At a glance
ETEC charges 0.47% a year, below the 0.59% average of the 5 funds most like it (the cheapest of 6). It has $4.2M in assets, the 6th largest of that group; it paid 0.57% of its price in distributions over the past 12 months, semiannual. Over the past year it returned −10.8% with distributions reinvested (S&P 500: +11.5%), 4th of those 6 funds; over three years it returned +6.6% a year. Its ten largest positions make up 48.0% of the fund, out of 56 in all.
The short version
iShares Breakthrough Environmental Solutions ETF (ETEC) is a BlackRock index fund tracking the Morningstar Global Emerging Green Technologies Select Index. That index holds US and foreign companies earning at least 25% of revenue from early-stage green technologies. Its 0.47% annual expense ratio undercut five similar funds, which averaged 0.59%. But with about $4.2 million in assets as of July 31, 2026, it was far smaller than those funds, and its price swings exceeded the broad market's.
Price history
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ETEC -10.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| ETEC official prospectus, to Dec 31, 2024 | — | -17.69% | — | — | — | -12.04% |
| MSCI All Country World Index Net index, same period | — | +17.49% | — | — | — | +20.15% |
| ETEC price data to Oct 27, 2026 | -8.0% | -10.8% | +6.6% | — | — | -2.0% |
- Over the year to Oct 27, 2026, ETEC returned -10.8%, 4th of 6 among similar funds.
- Its worst full calendar year was 2024 (-18.2%); its best was 2025 (+31.9%).
- The deepest fall in its price history was 39.7% (Jul 28, 2023 to Apr 8, 2025), recovered by Jan 12, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -8.0% | — |
| 2025 | +31.9% | — |
| 2024 | -18.2% | -17.69% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.1000 | |
| 2025 | $0.0800 | -65.2% |
| 2024 | $0.2300 |
What's inside
As of Jul 31, 2026, the fund held 56 securities; the ten largest made up 48.05% of assets. It also reported 9.03% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Kurita Water Industries Ltd. | 7.05% | |
| UNIVERSAL DISPLAY CORPORATION | 6.11% | |
| ALLEGRO MICROSYSTEMS, INC | 5.84% | |
| BORGWARNER INC. | 5.69% | |
| Contemporary Amperex Technology Co., Ltd. | 5.10% | |
| YASKAWA Electric Corporation | 4.12% | |
| GE VERNOVA INC. | 3.64% | |
| Kemira Oyj | 3.60% | |
| FIRST SOLAR, INC. | 3.53% | |
| XYLEM INC. | 3.37% | |
| NEXTPOWER INC. | 3.29% | |
| VESTAS WIND SYSTEMS A/S | 3.14% | |
| ENPHASE ENERGY, INC. | 3.01% | |
| Nordex SE | 3.00% | |
| NGK Corporation | 2.78% |
By country
United States 39.61%China 24.73%Japan 15.94%Cayman Islands 8.06%Finland 3.6%By asset type
Stocks 99.67%Other 0.18%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +9.12%, -3.19%, -14.31%.
How it works
ETEC is an index fund. Instead of picking stocks, it aims to match the Morningstar Global Emerging Green Technologies Select Index. Morningstar starts with its Global Markets ex India Index. It drops stocks averaging under $2 million a day in trading or worth under $300 million in publicly traded shares. It also removes companies tied to tobacco, controversial weapons, civilian firearms, thermal coal, oil sands or severe controversies.
Two revenue tests follow. A company needs at least 25% of revenue from eight green themes, such as renewable energy, water and green transportation. Morningstar analysts then keep only highly innovative green technologies and place each on the Rogers Innovation Adoption Curve, a theory of how fast new products spread. Products in the curve's three earliest stages count as emerging green technologies, and they must supply at least 25% of revenue. Each company then gets a revenue-weighted innovation score that gives the most points to the earliest-stage products.
As of July 31, 2026, the fund held 56 companies, with 48% of assets in the top 10. The largest were Kurita Water Industries (7.1%), Universal Display (6.1%) and Allegro Microsystems (5.8%). About 40% was in US stocks, 25% in China and 16% in Japan, so currency moves affect returns. Annual turnover of 61% means holdings change often. The fund uses no leverage or options.
What it really costs
- ETEC charges 0.47% a year, versus an average of 0.59% for the similar funds below (1st of 6, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $48 in the first year and $591 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| ETEC | $48 | $151 | $263 | $591 |
In a retirement portfolio
It is a narrow, volatile bet on early-stage green technology companies that once fell 39.7% from its peak, which makes it too risky to anchor a portfolio.
ETEC could add global green-technology exposure to broader funds, but with sharp swings. It launched in March 2023, so it has no record in the 2008, 2020 or 2022 downturns. It lost 18.2% in 2024, its worst calendar year, and fell 39.7% from its July 28, 2023 peak to an April 8, 2025 low. It recovered on January 12, 2026, about nine months after the low. Withdrawals near that low would have locked in steep losses.
Income is small: a 0.57% yield over the 12 months to October 27, 2026, paid twice a year. Its 0.47% fee beat the 0.59% peer average. On $10,000, the SEC's standard example puts 10-year costs at $591. Its tiny size, about $4.2 million as of July 31, 2026, adds risk, since very small funds sometimes close. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a small side position in early-stage green-technology companies in areas like water, renewable energy and green transportation, beside broad core funds.
- Cost-conscious thematic investors: its 0.47% expense ratio was below ERTH (0.67%), SMOG (0.61%), QCLN (0.59%), ACES and EVX (both 0.55%).
- Patient, long-horizon investors who can hold through drops like its 39.7% slide from July 2023 to April 2025 without needing the money.
Look elsewhere if
- Retirees seeking steady income: its yield was 0.57% over the 12 months to October 27, 2026, paid only twice a year.
- Investors wary of very small funds: about $4.2 million in assets as of July 31, 2026, versus over $100 million for each similar fund.
- Investors wanting market-like returns: from launch through 2024, it averaged a 12.04% yearly loss, while the MSCI All Country World Index averaged 20.15% gains.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| ETEC this fund | — | 0.47% | $4.2M | -10.8% | +6.6% |
| ERTH Invesco MSCI Sustainable Future ETF | 22% | 0.67% | $133.5M | -13.4% | +3.5% |
| QCLN First Trust NASDAQ Clean Edge Green Energy … | 19% | 0.59% | $836.7M | -2.0% | +9.8% |
| SMOG VanEck Low Carbon Energy ETF | 18% | 0.61% | $143.7M | -1.1% | +13.4% |
| ACES ALPS Clean Energy ETF | 15% | 0.55% | $109.2M | -25.3% | -2.8% |
| EVX VanEck Environmental Services ETF | 9% | 0.55% | $101.2M | +2.4% | +15.4% |
Questions investors ask
What does ETEC invest in?
ETEC holds US and foreign companies that Morningstar judges to earn at least 25% of revenue from emerging green technologies, in themes such as water, renewable energy and green transportation. As of July 31, 2026, it held 56 companies. The largest were Kurita Water Industries (7.1%), Universal Display (6.1%), Allegro Microsystems (5.8%), BorgWarner (5.7%) and Contemporary Amperex Technology (5.1%). The top 10 made up 48% of assets. About 40% was in US stocks, 25% in China and 16% in Japan.
What is ETEC's expense ratio?
ETEC's expense ratio, the yearly fee taken from fund assets, is 0.47%, according to its prospectus filed November 21, 2025. That was the lowest in a group of six similar green-themed funds. The other five averaged 0.59%, with ERTH highest at 0.67%. The SEC's standard example assumes $10,000 invested, a 5% yearly return and shares cashed out at the end of each period. On that basis, costs total about $48 after one year, $151 after three, $263 after five and $591 after ten.
ETEC vs ERTH: what's the difference?
ETEC is cheaper and far smaller, and the two share only about a fifth of their holdings. ETEC tracks Morningstar's emerging green technologies index and charges 0.47%. Invesco MSCI Sustainable Future ETF (ERTH), the similar fund with the most holdings in common, charges 0.67%. As of October 27, 2026, ETEC's one-year return was -10.8% and its three-year average was 6.6% a year, versus -13.4% and 3.5% for ERTH. As of July 31, 2026, ERTH had about $133 million in assets, while ETEC had $4.2 million.
Does ETEC pay dividends?
Yes, but very little. ETEC pays dividends twice a year. Its yield over the prior 12 months was 0.57% as of October 27, 2026, or about $0.13 per share. That is too small to fund much spending, so the fund works more as a bet on rising share prices than as a source of income. A retirement income plan would rely mainly on other holdings.
Is ETEC good for retirement?
ETEC fits better as a small, higher-risk side holding than as a core retirement fund. Its one-year volatility, a measure of how widely returns swing, was 25.4% as of October 27, 2026. It fell 39.7% between July 2023 and April 2025 before recovering in January 2026. Returns have swung widely: down 18.2% in 2024, up 31.9% in 2025 and down 8.0% for 2026 through October 27. Its 0.57% yield adds little income.